2020 ASEAN organic cosmetic market to exceed $4 billion

Increasing ecological consciousness and disposable income among consumers, and the willingness of local companies to invest in organic products are expected to propel the organic cosmetic market in the ASEAN region in the next few years.

In a recent study by Future Market Insights entitled "Organic Cosmetics Market: ASEAN Industry Analysis and Opportunity Assessment 2014 - 2020", the region's organic cosmetics market, which was valued at about $2.6 billion last year, is anticipated to reach $4.4 billion by 2020, registering a 9.5 percent CAGR. During the same period, it also predicted to account for approximately 7 percent of the global organic cosmetic market.

Hair care products are expected to take up the largest market share by 2020 at 28.2 percent, posting a CAGR of 9.3 percent. But in terms of revenue, organic skin care products, which generated more than $1 billion in 2014, will be the strongest, registering a 9.3 percent CAGR during the forecast period.

Geographically, Thailand and Indonesia accounted for 53.8 percent of the total organic cosmetics market in the region in 2014. The former will continue to dominate the ASEAN market in the next six years, accounting for 29.3 percent of the overall market share. Singapore, however, is predicted to post the highest CAGR at 9.8 percent.

Beauty salons will remain the most popular distribution channel, contributing 23 percent of the total revenue during the forecast period. This will be followed by department stores at 18.7 percent. Franchise outlets, however, are expected to register the highest CAGR at 10.3 percent.

View a comparison table of makeup and cosmetic suppliers on GlobalSources.com